Question $8$ Equity

Required:

Prepare journal entries to record items $1,2$ and $3.$

Date $/$ Accounts Debit Credit

Show the note to the financial statements providing details of the movements in the Retained Earnings account during the year.Question $8-$ Equity

Huntless Ltd has the following items in its accounting records for the current year:

$50,000$$$3$ issued and paid up ordinary shares

Dividends declared and paid during the year $$35,000$

Transfer from Retained earnings to General reserve $$12,000$

Net profit for the year $$35,000$

Opening Retained earnings $$50,000$

Required:

Prepare journal entries to record items $1,2$ and $3.$

Show the note to the financial statements providing details of the movements in the Retained

Earnings account during the year.